Premier slices off Irish division

Food group is understood to have appointed advisers to look into sale of arm that has turnover of more than €150m and employs about 100 people

B
ritain's biggest food company, Premier Foods, has put its Irish division on
the block, as consolidation steps up in the ambient food market.

Premier is understood to have appointed advisers to explore options for the
business, which includes the exclusivly Irish brands Erin soups, Chivers
jams and jellies and Gateaux cakes, as well as its wider stable. Premier
Foods declined to comment.

The company’s website says the Irish arm has turnover of more than €150m and
employs about 100 people. Premier formed it by amalgamating Rank
Hovis-McDougall, Campbell’s and Chivers Ireland. It had been expected to
continue to be a consolidator in this market, but has faced internal
challenges.

Premier reported a 29% drop in first-half profit, blaming commodity prices and
falling demand. It sold its canned foods business this year for £182m
(€208.5m).

Acquisitive domestic contenders could include DCC and Valeo Foods, formed when
CapVest teamed up with Origin